Event-Driven Hedge Fund Melqart Plans to Stop Taking New Money

  • London-based fund is said to manage more than $600 million
  • Fund started in 2015 by Michel Massoud, formerly of Cheyne

Melqart Asset Management (UK), a London-based hedge fund started by Michel Massoud, is preparing to close its fund to new money after assets rose to more than $600 million, according to a person familiar with the matter.

Assets at the firm’s multi-strategy event-driven fund have “grown to the extent that we anticipate closing the fund to new investments shortly,” Melqart said in an investor letter seen by Bloomberg News.

Massoud, who previously worked at Cheyne Capital Management, declined to comment.

The Melqart Opportunities Fund has gained 18 percent this year through September, more than double the 8.1 percent return of event-driven funds on average, Eurekahedge data show. The fund, which started trading in October 2015, rose 3 percent last month, and was up 14.5 percent in 2016, according to the letter.

Melqart has attracted new capital amid an increasingly buoyant European economy and record-low interest rates. It is among European event-driven funds experiencing inflows while peers globally continue to see redemptions. Investors pulled $40 billion from event-driven funds in 2016, and redeemed an additional $5.4 billion so far this year through Aug. 31, according to eVestment data.

Read More: Massoud’s Melqart Predicts M&A Surge as Hedge Fund Gains 48%

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